Definition
A Home Equity Line of Credit that lets homeowners borrow against their property's equity with a revolving credit line, typically at variable interest rates. It's a financial temptation that transforms your home into an ATM, for better or worse.
Example Usage
They opened a HELOC to fund renovations, appreciating the flexibility but nervously watching as interest rates climbed.
Origin
Banking product that gained popularity in the 1980s-90s as home values rose
Fun Fact
HELOCs became controversial after 2008 when many homeowners discovered they'd essentially gambled away their home equity just before the crash.
Source: Home financing terminology
Related Terms
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